At the beginning of Year $1,$ Copeland Drugstore purchased a new computer system for $$52,000.$ It is expected to have a five$-$year life and a $$7,000$ salvage value.

Required

a$-1.$ Compute the depreciation for each of the five years, assuming that the company uses straight$-$line depreciation.

Note: Use cell references from the given information above to complete this question.

Straight$-$line depreciation for each year

a$-2.$ Compute the depreciation for each of the five years, assuming that the company uses double$-$declining$-$balance depreciation.

Note: Use cell references from the given information above to complete this question.

Note: Leave no cell blank.

b$.$ Record the purchase of the computer system and the depreciation expense for the first year under straight$-$line and double$-$declining$-$balance methods in a horizontal statements model.

Note: Use cell references from the given information above to complete this question.

COPELAND DRUGSTORE

Horizontal Statements Model

Balance Sheet

Income Statement

Assets

Cash

Book Value of Computer

Straight$-$line depreciation

Double$-$declining$-$balance depreciation

Stockholders'

Equity

Retained

Earnings

Revenue

Expenses

$==$

Net

Statement of Cash

Income

Flows

$c-1.$ Prepare the journal entries to recognize depreciation for each of the five years, assuming that the company uses straight$-$line depreciation.

Note: If no entry is required for a transaction or event, select $"$No journal entry required" in the first account field.

Note: Use cell references from the given information above to complete this question.

c$-2.$ Prepare the journal entries to recognize depreciation for each of the five years, assuming that the company uses double$-$declining$-$balance depreciation.

Note: If no entry is required for a transaction or event, select $"$No journal entry required" in the first account field.